This paper attempts to present recent trends in private sector financing of large scale international transport projects in developing countries. The main items which have to be considered before investment is made are: (a) an evaluation of the risks involved. These include construction risks, delays, traffic and toll levels, political risks and financial risks; (b) the structure of the funding. This could be one of any of the following choices: equity, subordinated debt, senior debt, or amortization; (c) how public and private funding should be construed. Many projects, such as public transport, are not economically viable in their own right and require subsidy; and (d) the legal structure of the loan agreement and the construction contracts. Only the abstract of this paper is published in this conference proceedings.
Samenvatting